India and the Gulf Cooperation Council (GCC), the six-nation bloc of Middle Eastern nations, inked terms of reference on Thursday for starting talks for a Free Trade Agreement (FTA). The terms of reference (ToR) outline the scope and modalities of a proposed trade pact. Commerce and Industry Minister Piyush Goyal presided over the signing ceremony of the ToRs with GCC.
GCC is a union of six countries in the Gulf region - Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. Goyal said that the agreement will help boost bilateral trade and investments between the two. He added that about 10 million Indians are living and working in the GCC region. India has already implemented a free trade pact with the UAE in May 2022.
Also read: Agri, dairy sectors ‘completely protected’ in trade deal: Goyal
India and Oman also signed a Comprehensive Economic Partnership Agreement (CEPA) in Muscat on December 18, 2025. Launch of FTA talks with the GCC would be a kind of resumption of the negotiations, as the earlier two rounds of negotiations were held in 2006 and 2008 between the two regions. The third round did not happen as GCC deferred its negotiations with all countries and economic groups.
India imports predominantly crude oil and natural gas from the Gulf nations like Saudi Arabia and Qatar, and exports pearls, precious and semi-precious stones, metals, imitation jewellery, electrical machinery, iron and steel, and chemicals to these countries.
India's exports to the GCC grew by about one per cent to about USD 57 billion in 2024-25 against USD 56.32 billion in 2023-24. Imports rose by 15.33 per cent to USD 121.7 billion in 2024-25 from USD 105.5 billion in 2023-24. Bilateral trade has increased to USD 178.7 billion in 2024-25 from USD 161.82 billion in 2023-24. The UAE was India's third-largest trading partner in the last fiscal.
Indo-US bilateral trade deal in 4-5 days: Goyal
India and the US are expected to finalise and sign a joint statement on the first tranche of the bilateral trade agreement in 4-5 days, Commerce and Industry Minister Piyush Goyal said on Thursday.
After the joint statement is signed, the US will come out with an executive order on reducing tariffs on India to 18 per cent. At present, Indian goods attract a 25 per cent reciprocal tariff and a 25 per cent additional tariff for buying Russian crude oil.
Goyal told reporters that a legal agreement for the first tranche of the pact is expected to be signed by mid-March. The joint statement will be followed by an exhaustive legal agreement, he said. Goyal also said that there is no investment commitment in this pact.
Once the statement is signed, it will be converted into a legal agreement and mid-March, "We are hopeful of signing that legal agreement," Commerce Secretary Rajesh Agrawal said. The signing of the legal text will lead to a cut in tariffs by India on certain US goods.
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